The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds.
b. has a strong education system.
c. has secure property rights.
d. has a tax system that encourages savings.
A
You might also like to view...
There are many reallife examples of factorintensity differences across the same industries in different nations. How does the HeckscherOhlin model handle this?
A. The HO model makes no assumptions about different factor intensities. B. The HO model assumes that all firms require equal amounts of capital and labor just to be on the safe side. C. The HO model ignores the possibility of different factor intensities and instead assumes that each industry has the same factor intensity in every nation. This assumption enables the model to predict trade based on other factors. D. Actually, the factorintensity reversal issue does not change the predictive value of the model.
The largest source of federal government revenue in the United States is
A) corporate income taxes. B) individual income taxes. C) payroll taxes. D) excise taxes.